Executive Compensation at Dignity Health (2022)

Dignity Health is part of the CommonSpirit Health System (In 2019, Dignity Health merged with Catholic Health Initiatives (CHI) to become one of the largest tax-exempt, non-profit healthcare systems in the United States). With more than 60,000 employees staffing 400 care centers and 39 hospitals in 21 states, Dignity Health is based in San Francisco, CA (whereas CommonSpirit Health is based in Chicago, IL). Although Dignity Health has numerous related/affiliated non-profits, taxable corporations and trusts, this post is limited to addressing the executive compensation of Dignity Health, an affiliate of CommonSpirit Health.

In 2022, Dignity Health reported total revenue of $9.5 billion (compared to $10.1 billion in 2021) with most revenue coming from patient income net of charity ($5.4 billion), medicare/medicaid ($2.7 billion), management services ($449 million) – which appears to be from affiliated/related organizations within the Dignity Health network, and investment income and gain on the sale of assets ($510 million).

Expenses totaled $9.3 billion (including $389 million in depreciation) with the largest expenses reported to be:

• $5.0 billion:  Compensation
• $1.3 billion:  Fees to Outside Vendors (includes nearly $300 million for outside staffing)
• $1.2 billion:  Medical Supplies
• $639 million:  Office-Related Expenses
• $340 million:  Med Cal/Med Prov Fees
• $280 million:  Grants and other assistance ($178 million to Dignity Health Medical Foundation)

46,034 employees received $5 billion in compensation, which equates to an average compensation of $109,000.  15,105 employees received more than $100,000 in compensation with the 33 most highly compensated reported to be:

• $35,462,873:  Lloyd Dean, CEO
• $ 7,069,638:  Marvin O’Quinn, President and COO
• $ 5,694,337:  Charles P Francis, SEVP, Chief Strategy Officer
• $ 4,958,895:  Daniel J Morissette, Treasurer, SEVP CFO
• $ 4,489,579:  Elizabeth Shih, SEVP, CAO
• $ 4,108,512:  Robert Wiebe, EVP, Chief Medical Officer
• $ 3,824,816:  Charles Cova, SVP, Operations and CEO, CA Central Coast
• $ 3,575,043:  Darryl Robinson, SEVP, Chief HR Officer
• $ 3,169,047:  Julie Sprengel, SVP, Operations & CEO, Nevada/Southern
• $ 3,120,528:   Mitch Melfi, Secretary, Chief Legal Officer*
• $ 3,074,765:  Laurie Harting, SVP, Operations & CEO Greater Sacrame
• $ 3,069,170:  Suja Chandrasekaran, SEVP, Chief Information and Digital
• $ 2,755,047:  Linda Hunt, SVP, Operations and CEO, Arizona Division
• $ 2,669,226:  Kathleen Sanford, Chief Nursing Officer*
• $ 2,650,839:  Thomas Kopfensteiner, Chief Mission Officer*
• $ 2,417,999:  Thomas McGinn, EVP, Physician Enterprise*
• $ 2,383,030:  Fred Najjar, EVP, Chief Philanthropy Officer
• $ 2,360,823:  Shelly Schlenker, EVP, Chief Advocacy Officer
• $ 2,341,792:  John E Petersdorf, WVP, Operational Effectiveness
• $ 2,338,937:  Todd A Strumwasser, SVP, Operations & CEO Northern California
• $ 2,242,026:  Anthony Scott Carswell, System SVP Market Strategy and Development
• $ 2,201,219:  Jon Vanboening, SVP, Operations & CEO, Central California
• $ 2,175,821:  Darren Lee, Hospital President (to 11/1/21)
• $ 2,159,457:   Tammara Wilcox, System SVP Payer Strategy & Relations
• $ 1,833,052:  Michelle Cooper, EP, Chief Compliance Officer*
• $ 1,819,361:  Lisa Gamshad Zuckerman, System SVP Treasury & Strategic Inve.
• $ 1,697,175:  Gary A Greensweig, System SVP Chief Physician Executive
• $ 1,609,739:  Benjie M Loanzon, System SVP Finance and Corp Con.
• $ 1,435,644:  Phil Foster, System SVP Enterprise Risk Management*
• $ 1,339,631:  Danielle Weber, System SVP Revenue Cycle*
• $ 1,207,247 :  Paul Edgett, III, Former Chief Business Lines Officer*
• $ 1,204,071:  Alyssa C Rieder, VP, Chief Investment Officer
• $   985,086:   Patricia Webb, Former SEVP, CAO*

A “*” indicates compensation was paid by a related organization.

The  employees listed above received more than $120 million in 2022. 20 of the 33 (61%) are male while 13 of the 33 (39%) are female. 8 of the 10 most highly compensated employees are male including the CEO, Lloyd Dean who received more than $35 million in compensation in 2022.

The 24 most highly compensated employees in 2022 received nearly $300 million in compensation from 2019-2022 (note:  highly compensated employees in 2019-2021 but not in 2022 are not included in the list below):

Lloyd Dean:  Total Compensation 2019-2022:  $78 million

• 2022: $35,462,873
• 2021:  $14,647,375
• 2020: $16,745,227
• 2019:  $11,433,166

Marvin O’Quinn:  Total Compensation 2019-2022:  $23 million

• 2022:  $7,069,638
• 2021:  $5,416,775
• 2020: $5,599,854
• 2019:  $4,481,458

Charles Francis:  Total Compensation 2019-2022:  $15 million

• 2022: $5,694,337
• 2021:  $4,168,547
• 2020: $3,099,301
• 2019:  $2,554,112

Daniel Morissette:  Total Compensation 2019-2022:  $15 million

• 2022: $4,958,895
• 2021:  $3,734,852
• 2020: $3,711,706
• 2019:  $2,822,859

Elizabeth Shih:  Total Compensation 2019-2022:  $15  million

• 2022:  $4,489,579
• 2021:  $3,643,868
• 2020: $4,226,484
• 2019:  $2,629,682

Robert Wiebe:  Total Compensation 2019-2022:  $13 million

• 2022:  $4,108,512
• 2021:  $3,163,843
• 2020: $3,246,468
• 2019:  $2,550,161

Charles Cova:  Total Compensation 2019-2022:  $10 million

• 2022:  $3,824,816
• 2021:  $2,137,456
• 2020: $2,224,329
• 2019:  $1,808,597

Darryl Robinson:  Total Compensation 2019-2022:  $14 million

• 2022:  $3,575,043
• 2021:  $4,194,176
• 2020:  $3,343,413
• 2019:  $2,891,348

Julie Sprengel:  Total Compensation 2019-2022:  $9 million

• 2022:  $3,169,047
• 2021:  $1,893,916
• 2020: $1,905,771
• 2019:  $1,682,980

Mitch Melfi:  Total Compensation 2020-2022:  $7 million

• 2022:  $3,120,528
• 2021:  $2,153,525
• 2020:  $1,678,524:

Laurie Harting:  Total Compensation 2019-2022:  $10 million

• 2022:  $3,074,765
• 2021:  $2,450,066
• 2020: $3,329,345
• 2019:  $1,561,262

Suja Chandrasekaran:  Total Compensation 2021-2022:  $5 million

• 2022:  $3,069,170
• 2021:  $2,055,640

Linda Hunt:  Total Compensation 2019-2022:  $9 million

• 2022:  $2,755,04
• 2021:  $2,112,324
• 2020:  $2,157,949
• 2019:  $1,869,348

Kathleen Sanford:  Total Compensation 2020-2022:  $6 million

• 2022:  $2,669,226
• 2021:  $1,949,450
• 2020: $1,493,219

Thomas Kopfensteiner:  Total Compensation 2020-2022:  $6 million

• 2022:  $2,650,839
• 2021:  $1,947,571
• 2020: $1,509,458

Thomas McGinn:  Total Compensation 2022:  $2.4 million

• 2022:  $2,417,999

Fred Najjar:  Total Compensation 2021-2022:  $4 million

• 2022:  $2,383,030
• 2021:  $1,434,224

Shelly Schlenker:  Total Compensation 2022:  $2.4 million

• 2022:  $2,360,823

John Petersdorf:  Total Compensation 2021-2022:  $4 million

• 2022:  $2,341,792
• 2021:  $1,853,657

Todd Strumwasser:  Total Compensation 2019-2022:  $7 million

• 2022:  $2,338,937
• 2021:  $1,888,313
• 2020:  $1,680,717
• 2019:  $1,432,415

Anthony Scott Carswell:  Total Compensation 2019-2022:  $7 million

• 2022:  $2,42,026
• 2021:  $1,692,447
• 2020: $1,539,763
• 2019:  $1,319,822

Jon Vanboening:  Total Compensation 2019-2022:  $8 million

• 2022:  $2,201,219
• 2021:  $1,985,494
• 2020: $1,765,923
• 2019:  $1,626,988

Darren Lee:  Total Compensation 2022:  $2.2 million

• 2022:  $2,175,821

Tammara Wilcox:  Total Compensation 2019-2022:  $7 million

• 2022:  $2,159,457
• 2021:  $1,796,503
• 2020:  $1,471,374:
• 2019:  $1,261,229

In addition, 12 former board members received 100,000-$130,000:

• Tessie Guillermo
• Christopher Lowney
• Kent Bradley
• Mark Demichele
• Peter Hanelt
• Antionette Hardy-Waller
• Patrick Steele
• Angela Archon
• Geraldine Bednash
• James Hamill
• Phoebe Yang
• Gary Yates

Dignity Health paid for first class or charter travel and made gross up payments or provided tax indemnification in addition to club dues for business purposes and security services including vehicle and driver. For information on these expenses, severance payments, post employment separation payments, and the non qualified supplemental benefit plan and the deferred compensation plan, see the Form 990, Schedule J, Part III, Supplemental Information.

1,035 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $443 million:  Optum360 LLC, of Eden Prairie, MN for revenue cycle services
• $152 million:  Medical Solutions, of Omaha, NE for staffing services
• $115 million:  Guidant Global, of Southfield, MI for staffing services
• $ 54 million:  Cerner Corp, of Kansas City, MO for technology services
• $ 37 million:  JE Dunn Construction Co, of Kansas City, MO for contracting services

At the beginning of the year, Dignity Health had $7.8 million in net assets. After adjusting for unspent revenue ($200 million), an unrealized loss on investments ($677 million), and a $1.1 billion positive adjustment to net assets  – primarily for pensions that appear to be overfunded, Dignity Health’s net assets were $8.4 billion at year-end.

To read the IRS Form 990 2021 for the year ending June 30, 2022 click here.